Creating​Financial Champions

What is your game plan for your life?

With their unique skills, professional athletes can build up significant wealth. But what happens when their playing days are over? Unfortunately, tragedy comes upon a majority of retired professional athletes.

• 60% of NBA players file for bankruptcy within 5 years of retirement• By the time they have retired for 5 years or less, 78% of NFL players file for bankruptcy• MLB players file for bankruptcy 400% more often than the average U.S. citizen

In a 2009 review of athlete finances, Sports Illustrated reported 78% of NFL players are bankrupt or under financial stress in two years of retirement (Source: How (and Why) Athletes Go Broke, Pablo S. Torre, Sports Illustrated, March 2009, SI.com). It’s an indicator of what retired athletes can face. Financial stress can come from joblessness, divorce, health problems, outstanding liabilities, or other influences. But these alarming stats don’t have to be representative of an athlete’s post-career life.

There are a number of factors which can cause financial downfall:

• Limited time for earnings with short career spans (on average)

• Overspending during peak earning years

• Falling victim to fraud

• Bad investments

• Limited financial experience

• Taxes, debt & liabilities

Even though annual salaries are huge – the average yearly compensation for an NBA player is $5.5 million, for example – the paychecks won’t be coming indefinitely. The average playing time tends to be short – the average career span is 3.5 years in the NFL and 4.8 years in the NBA (Source: From Stoked to Broke: Why are So Many Professional Athletes Going Bankrupt?, Ross Crooks, February 2013, Blog.Mint.com). That’s a small window to get sizable earnings overall, and even with the large amount of compensation, a professional athlete’s annual salary is subject to heavy taxes.

Say you earn $5 million in a year. Once you’re finished paying your agent and taxes, that $5 million will dwindle to just $2 million for the year. And if an athlete’s career span is cut short, their savings aren’t going to last for very long (even if money is saved carefully). Proper, strategic financial planning with a qualified advisor before retirement is necessary for maintaining your wealth.

Many professional athletes have experienced financial trouble for different reasons. There are a few notable profiles which show why it’s important to begin financial planning now instead of later (Important Note: All athlete stories below taken from these sources: Top 15 Athletes Who Suprisingly Went Broke, Chris Martin, November 2014, TheSportster.com; 10 Athletes Who Earned Millions, Then Lost It All, Ashley Barnett, MoneyUnder30.com; 15 Athletes Gone Broke, TheRichest.com)

• Mike Tyson – As one of the most famous names in boxing, Tyson earned over $400 million in his boxing career. Nevertheless, he filed for bankruptcy in 2003, claiming debt totals of $27 million. Tyson owed $13 million to the IRS and $9 million for his divorce settlement. The New York Times reported Tyson spent millions on things like mansions, luxury vehicles, and even pet tigers. Almost all of his $400 million in earnings was gone. It was hard for Tyson to recover from years of extravagant, frivolous spending.• Lenny Dykstra – As a three-time All-Star player, Dykstra was an instrumental force for the New York Mets and Philadelphia Phillies. He was one of the leaders behind the Mets’ World Series victory in 1986. During his playing career, Dykstra had a reputation for being an over-the-top free-spender. He became more conservative with his money post-career, but eventually the many years of extravagant spending took their toll. By 2009, Dkystra had to give up his World Series ring to make ends meet. When declaring bankruptcy, he claimed $50,000 in assets and $50 million in liabilities – an extremely hard pitfall from which to recover.• Mark Brunnell – As an accomplished quarterback, Brunnell includes in his career playing for the Green Bay Packers, Jacksonville Jaguars, and New York Jets. Over the years, he earned over $50 million. Despite this success, Brunnell filed for bankruptcy in 2010. In the process, Brunnell listed assets of $5 million and liabilities of almost $25 million – nearly a $20 million gap. Some of the financial trouble stemmed from unsuccessful real estate ventures and business loans.• Antoine Walker – In the NBA, Walker earned $110 million after playing for 5 teams over a 15-year span. He won an NBA Championship during his career. Despite his very sizable earnings, he filed for bankruptcy in May of 2010. In Walker’s bankruptcy filing, he claimed assets of $4 million and liabilities of almost $13 million. Where did his financial trouble come from? From spending all of his $110 million in earnings! It’s been reported Walker blew millions on a luxury car fleet, custom clothing, personal real estate properties, and excessive gambling.

Without proper preparation, financial stress or even bankruptcy could be around the corner. But it doesn’t have to be. Taking proper measures will help you preserve your wealth, enjoy your lifestyle in retirement, and have funds available when any unforeseen events arise.At Hall of Fame Financial, we can help you with your own personal game plan for life.

Our team will offer personalized strategies with partnerships that will help you achieve your objectives. It is our aim to address your financial distractions and let you be free to concentrate on your professional career. Let us know how we can help or if you have any questions.Call 877-941-5273 for more information

Hall of Fame Financial exists to provide a legacy for retired players, their families and fans. We provide education, additional income opportunities and possible second careers. We support non-profit organizations that support the ongoing needs of the players.

Retired Players Association

Hall of Fame Financial has teamed up with the Retired Players Association to provide information, opportunities, and consulting for retired players.

Carl Eller has provided his knowledge and experience to countless players who left the game without knowing what to do.

Mission Statement of Hall of Fame Financial

"Hall of Fame Financial exists to provide a legacy for retired players, their families and fans. We provide education, additional income opportunities and possible second careers. We proudly support non-profit organizations that support the ongoing needs of the players."